Lexipedia

Choice of law

Choice of law is the selection of the legal system governing a legal relationship, either by conflict rules or by the parties’ valid agreement.

Choice of law is central in cross-border contracts and other private-law relationships. Swiss private international law often permits parties to choose the governing law, especially in commercial contracts, but limits may apply for consumers, employees, family matters, property rights, insolvency or overriding mandatory rules. A choice-of-law clause should be distinguished from a jurisdiction or arbitration clause: one selects substantive law, the other the decision-making forum. Courts may disregard artificial or impermissible choices and apply mandatory protections where required.